AO World PLC (LSE:AO.) has called to an end its ill-fated expansion into Germany.
The online electricals retailer has concluded its strategic review of the German business and decided that closure of the operation is the best course of action.
This decision was based on the continuing deterioration in the outlook for the German business, as well as the board's responsibilities to shareholders and other stakeholders, AO World said.
The German business currently represents around 10% of AO's total group revenue. It is expected that its closure will incur cash costs of between nil and £15mln.
The company added that while remaining mindful of the uncertain macroeconomic context in the UK and the continuing global supply chain challenges, the group's UK business continues to trade in line with the board's expectations for 2023.
Shares in AO World were down 0.8% at 72.7p following the announcement.